The solar energy industry in New Mexico has been growing steadily in the past few years, and today, the state gaining more influence in the solar power market. New Mexico’s solar panels installations have been increasing exponentially creating jobs across the state, providing benefits of energy independence, and, certainly, helping preserve the environment.
A typical out of the pocket cost of installation of the 5kW solar panel system in New Mexico is from $14,000 to $20,000 before the Federal Solar Credit.
The state’s cost of solar panels per watt is $3.30/W. The expected net 20-years savings are anywhere from $25,000 to $34,000.
The payback period ranges from 7.9 to 10.7 years.
The Federal Investment Tax Credit – the government program that allows you to claim 30 % of the cost of your solar equipment and its installation on your federal taxes.
Sustainable Building Tax Credit - you will get a credit on your taxes from the New Mexico State government if you install solar panels on your home. To qualify for the program, the US Green Building Council has to certify your house as sustainable. The certification level will determine the value of the credit.
Solar Property Tax Exemption – when the installation of solar increases the property value, homeowners are exempt from paying property taxes on that increased value.
After comparing the advantages and disadvantages of going solar in New Mexico it is obvious that the advantages clearly outweigh the disadvantages. Plentiful sunshine and great solar incentives make New Mexico one of the best places in the country to go solar both for home and business owners.
A statewide program that is available to all customers of any investor-owned utility companies and electric cooperatives within New Mexico. The utility company will compensate its customers for the excess electricity by either paying them for that electricity at the utility’s energy rate or by crediting the customer’s account. Unused credits are carried over from month to month. If a customer decides to leave this particular utility company, the unused credits are paid to them at the utility’s energy rates.
El Paso Electric Company offers its customers to earn some extra money by participating in their renewable energy certificate purchase program. The utility company pays 2 cents per kWh of electricity generated by its customers’ solar power systems.
If you are a customer of Farmers Electric then you are eligible to up to $500 rebate for the installation of a new solar power system up to 50kW. The rebate form is available on their website.
When you install a solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is going to be phased out by 2024.
To be eligible to claim this credit, you must owe federal taxes.